Match these terms with their definitions.
-Debt that does not have collateral and is thus unsecured.
A)Callable bonds
B)Long-term lease
C)Convertible bonds
D)Debenture bonds
E)Junk bonds
F)Mortgage bonds
G)Notes payable
H)Short-term lease
I)Secured bonds

Question

Quizplus · Accepted Answer

Debenture bonds are a type of debt instrument that is not secured by physical assets or collateral. Instead, debentures are backed by the general creditworthiness and reputation of the issuer. Because they are unsecured, debenture holders have a greater risk compared to secured bondholders, and therefore, debenture bonds typically offer a higher rate of return to compensate for this increased risk.

Match These Terms with Their Definitions